Pensana Regulatory News (PRE)

20 Apr 2005 07:00

Pan Andean Resources PLC20 April 2005 Pan Andean Resources plc Drilling Update - Texas Pan Andean Resources, (AIM: PRE) the oil and gas explorer and producer in SouthAmerica and the Gulf of Mexico, announces an update on drilling on its Texasinterests. The Zachry-Korenek No.2 well in Danbury Dome, in which Pan Andean holds a 7.3%interest, has been completed to the target depth of 8,585 feet. Electric logsconfirm at least four commercially productive zones. Gross reserves areestimated to be 3 billion cubic feet of gas and 300,000 barrels of oil. The wellhas been tied into the production system and is producing 300,000 cubic feet ofgas per day from one zone. In West Texas, the Estaban No. 1 well in which Pan Andean holds a 20% interesthas been drilled to the target depth of 6,400 feet without finding thereservoir. This result is surprising and disappointing as the well was drilledclose to existing producers. It is expected that, following evaluation, one ofthe existing abandoned shallow wells will be re-entered and drilled to targetdepth. The reservoir was discovered in 1955 but available technology at the timeand low oil prices combined to make production uneconomic. In the coming three months, further wells will be drilled in the Danbury Domelicence area: • Danbury Dome East (Pan Andean interest - 9.75%)• Neff Area (Pan Andean interest - 9.75%)• Vrazel Area (Pan Andean interest - 20.9%) Contacts: Jim Finn + 353 1 8332833 Bell Pottinger Corporate & FinancialNick Lambert +44 7811 358 764 www.panandeanresources.com This information is provided by RNS The company news service from the London Stock Exchange